2. The Increased Importance of Logistics
• A Reduction in Economic Regulation
• Recognition by Prominent Non-Logisticians
• Technological Advances
• The Growing Power of Retailers
• Globalization of Trade
Three objectives of logistics strategy:
• Cost reduction (variable costs)
• Capital reduction (investment, fixed costs)
• Service Improvement (may be at odds with
the above two objectives).
3. VRP Solutions
• Heuristics
– Construction: build a feasible route.
– Improvement: improve a feasible route.
• Not necessarily optimal, but fast.
• Performance depends on problem.
• Worst case performance may be very poor.
• Exact algorithms
– Integer programming.
– Branch and bound.
• Optimal, but usually slow and applicable for small size
problem
• Difficult to include complications.
4. The VRP is applicable in many practical situations directly related to
the physical delivery of goods such as
distribution of petroleum products,
distribution of industrial gases,
newspaper deliveries,
delivery of goods to retail store,
garbage collection and disposal,
package pick-up and delivery,
milk pick-up and delivery, etc.
the non-movement of goods such as
picking up of students by school buses,
routing of salesmen,
reading of electric meters,
preventive maintenance inspection tours,
employee pick-up and drop-off , etc.
APPLICATIONS OF VRP
5. A DSS
Employee Bus Routing
Commodity Distribution
In COVERS
Efficient Heuristic Procedures
NNH
MNNH
MSCWH
Simulation Features
Manipulate the System Generated Routes
Completely User Generated Routes
COVERS Handles
Multi-Depot VRP
Heterogeneous VRP
COVERS- COMPUTERIZED VEHICLE ROUTING SYSTEM
6. EMPLOYEE PICKUP VEHICLE ROUTING PROBLEM (EPVRP) –
BANGALORE, KARNATAKA, INDIA
Indian Telephone Industries [ITI] Limited
Bharat Electronics Limited [BEL]
Hindustan Machine Tools [HMT]
Hindustan Aeronautics Limited [HAL]
Indian Space Research Organization [ISRO]
National Aeronautical Laboratory [NAL]
Central Machine Tools of India [CMTI]
………
![EMPLOYEE PICKUP VEHICLE ROUTING PROBLEM (EPVRP) –
BANGALORE, KARNATAKA, INDIA
Indian Telephone Industries [ITI] Limited
Bharat Electronics Limited [BEL]
Hindustan Machine Tools [HMT]
Hindustan Aeronautics Limited [HAL]
Indian Space Research Organization [ISRO]
National Aeronautical Laboratory [NAL]
Central Machine Tools of India [CMTI]
………](https://image.slidesharecdn.com/mathi033g-250810173155-8ae0d742/85/mathi033ggnnnnnnnnnnnnnnnnnnnnnnnnnn-ppt-6-320.jpg)
